Select committee review and the quality of section 32A reports
Parliamentary scrutiny
FEC is the Parliamentary select committee to which the compendium of section 32A reports is referred by the House. FEC can consider section 32A reports themselves, or refer individual section 32A reports to another committee whose subject area covers the subject matter of the report.
Select committee may examine section 32A reports in tandem with the financial review of the administering department. Therefore, the Chief Executive of the relevant administering department may be required to answer questions on the section 32A report. Where a select committee has undertaken a review of a section 32A report, the committee’s findings are reported back to the House.
The select committee interest lies in what has been achieved with those resources provided, and whether they have been used prudently, in the public interest, and in accordance with the law.
Section 32A reports are not required to be audited by the Auditor-General. However, the Auditor-General, in their role as an independent adviser to Parliament, can be asked by select committees to provide advice on section 32A reports.
Quality of reporting
The quality of non-financial performance information in section 32A reports is of on-going interest to Parliament, particularly as these non-departmental appropriations often include significant expenditure. Good information needs to be provided to Parliament to demonstrate public accountability for these appropriations. The quality of information provided should be sufficient and appropriate so that a reader of the report can assess the service performance or results achieved.
When providing advice to select committees on section 32A reports between 2007 and 2010, the Auditor-General has noted that the quality of section 32A reporting needs to be improved. For example, some section 32A reports provide only summary information concerning volumes, timeliness and price rather than reporting against performance measures or providing information on the quality of services.
Administering departments are strongly encouraged to apply the same standards of reporting to section 32A reports as is expected in their own departmental annual reports.
Office of the Auditor-General publicationsthat discuss the reporting of performance information public entities can be found at http://www.oag.govt.nz/reports/by-subject/performance-reporting.
